GH¢6bn revenue to be generated from GH¢1 Fuel Levy not enough for energy sector – Jinapor

Energy Minister John Jinapor has said the newly implemented GH¢1.00 fuel levy is anticipated to raise between GH¢5 billion and GH¢6 billion to fund the purchase of liquid fuel but emphasized that the amount will still be insufficient.

Speaking in an interview on Citi FM, the Minister justified the levy as an essential measure to alleviate Ghana’s growing energy sector debt and guarantee a steady supply of fuel for power plants.

John Jinapor stressed that the anticipated revenue to be generated from the levy would only account for 60% of the actual amount required to fund the energy sector crisis.

“This amount, if you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is.

“But when you look at the real object, it is to help us first to procure liquid fuel, and within the veil of the liquid fuel, it will be about GH¢1.2 billion. The government said that this GH¢1 would give us about GH¢5–6 billion, which is about 60% of what we require,” Jinapor explained.

“So, even with this GH¢1, the Finance Minister will still have to assist us in getting some additional money to buy liquid fuel,” he added.

Speaking on measures to offset the sector’s debt, Mr. Jinapor noted that the government is actively renegotiating terms with Independent Power Producers (IPPs) and developing a payment plan to stabilise the sector.

“As for the debt, we are renegotiating with the IPPs, and having a payment plan with them so that we stop the bleeding, reduce the inefficiency, and turn the sector around. our immediate challenge now is how to get liquid fuel to sustain the power,” he stated.

Meanwhile, Founding President of IMANI Africa, Franklin Cudjoe, is unhappy with the approval of the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.

He wants the Energy Minister to discontinue the process to approve the levy and rather focus on cutting waste in the energy sector to rake in money.

Commenting on the approval on his Facebook page, he wrote, “That quick? Fastest pickpocketing ever!”